Given: Earnings available to the equity shareholders 30 Lakhs, Cost of equity is 15%, Debt outstanding 150 Lakhs. Value of the firm will be –

CA Intermediate · Financial Management and Strategic Management · MTP · September 2024
Given: Earnings available to the equity shareholders 30 Lakhs, Cost of equity is 15%, Debt outstanding 150 Lakhs. Value of the firm will be –
(A) 200 Lakhs
(B) 250 Lakhs
(C) 350 Lakhs
(D) 300 Lakhs

Suggested Answer and Working Notes:

Correct Answer: Option (C)

350 Lakhs

Topics: Part-A: Financial Management

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